Assuming the local versus offshore good is a perfect substitute, that means that the value has not changed.
Paying more for the local good means your money is worth less, as it buys less value.
Your question on the production line doesn't account for all of the precursors also being local, plus the local energy rates, local taxes, local rents, and so on. Everything tends to be more expensive, otherwise the cost of managing offshore production wouldn't be worth the effort.
Total isolation only works when there's still room to grow by way of some underutilized resource- cheap labor, land, or something extractable from the environment like wood or minerals.
From purely a price perspective, sure. But there are other advantages to maintaining production capacity within our own country.
Plus, doesn't offshoring effectively push the whole world towards a common cost-of-living/income ratio? Great if you're labor in a struggling country, bad if you are labor in the richest country in the world.
Assuming the local versus offshore good is a perfect substitute, that means that the value has not changed.
Paying more for the local good means your money is worth less, as it buys less value.
Your question on the production line doesn't account for all of the precursors also being local, plus the local energy rates, local taxes, local rents, and so on. Everything tends to be more expensive, otherwise the cost of managing offshore production wouldn't be worth the effort.
Total isolation only works when there's still room to grow by way of some underutilized resource- cheap labor, land, or something extractable from the environment like wood or minerals.